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X10 goes Chapter 11

Advertising suit verdict and debts force X10 into Chapter 11.

X10, the self described "world's largest online advertiser," filed for Chapter 11 bankruptcy protection today. Ironically, it is advertising debt that led to this move. The company gained notice here at Ars way back in June '99 (about 3/4 down) when they were offering free giveaways of their Firecracker home automation kit. The rest of the Internet world heard about X10 from the aggressive use of pop-under ads for their remote wireless "security" cams. That advertising campaign got them a spot in the "Top 50 US sites" back in 2001, but also may have been their ultimate downfall. AdvertisementBanners.com helped provide X10 with the pop-under technology for the campaign, and was recently awarded $4.3 million in punitive damages after it was decided X10 stole their method of serving pop-under ads. Advertisers will claim the more annoying a campaign is, the more successful it is, but the X10 case shows people have a breaking point and will actively avoid a product if they are annoyed enough with the company.?